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| Teaching Since: | May 2017 |
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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
How much money would you have to deposit today in order to have $2,000 in four years if the discount rate is 8 percent per year? ( LG 2-9 )
( LG 2-9 )
So far, we have looked at factors that determine the level of interest rates and at what causes interest rate movements over time. We finish the chapter with a look at the technical details of how interest rates affect the value of financial securities by reviewing time value of money concepts. Time value of money is a crucial tool for much of the analysis in this textbook. For example, interest rates have a direct and immediate effect on the value of virtually all financial securities—that is, interest rates affect the price or value the seller of a security receives and the buyer of a security pays in organized financial markets.
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